Disbanding Thai Corporation - What Are The Costs?

[buzzer]

Hi,

I pay ฿15,000 every year for a law/accounting firm to file my taxes. Plus an additional ฿2,000 just in case I actually owe taxes. I don't, but have never had them refund the ฿2,000,

Several years ago I was going to buy a shophouse to be constructed about 100 meters from where I was living, so I formed a Thai Corporation. I learned to dislike the neighborhood, and wasn't pleased about the quality of construction as I saw the building going up. So, I decided to back out of the deal.

In the meantime, I've had this useless, unused corporation on my hands that I have to pay ฿17,000 per annum just to stay legal. When I inquired of my Lawyer/Accountant about how much it would cost to dissolve the corporation they quoted me ฿60,000 for their fees.

Since then I've tried to transfer the corporation at cost (and a loss to me) but haven't had any takers. The price would be similar to buying a new corporation, so, why would anyone want a 2nd hand one?

Is this ฿60,000 to close down a Thai Corporation standard, or does anyone know of anyone who can do it legally for significantly less? (like 75% less?)

As it stands, in order to pay taxes for 2009, and fold the corporation, I'm looking at paying close to ฿80,000. This seems a bit much.

Thanks - Buzzer

[elcent]

It's usually much higher, especially when your corporation is registered for over one year. I know of companies who paid 300000 plus for closing down.

[scorecard]

I've been quoted 60 - 80,000Baht.

My understanding is that their is a lot of paperwork, process, filing with various government agencies involved, plus (because of the applicable laws/regulations) the company cannot be closed until there is a 'search' for any outstanding debts owed by the company, unfulfilled contracts, open / unresolved legal actions, etc., etc.

One lawyer told me that the 'search', amongst other actions, includes (by law) large notices in at least 3 newspapers, in every province of Thailand, for one week.

[samran]

see this old thread from 2006

http://www.thaivisa.com/forum/Close-Dorman...any-t95696.html

about 25K.

Suspect, prices haven't changed that much since then.

[raro]

see this old thread from 2006

http://www.thaivisa.com/forum/Close-Dorman...any-t95696.html

about 25K.

Suspect, prices haven't changed that much since then.

that's also what I paid about a year ago. Most expensive part is the closing balance. You can use the year-end balance for this purpose if you close down the company the same day your accounting year ends (usually on December 31st).

[BWPattaya]

Save yourself some money - just give the company away to someone who wants to form a company. Sign them on as a director and remove yourself.

That will still cost you some cash but not as much as closing the company.

Don't be tempted to just walk away unless you are leaving Thailand and never returning. After three years on non-payment of taxes you will find the taxes + interest add up to a lot-----plus there will be an arrest warrant out for you.

[richardt1808]

hi,

I just spoke to a friend who does all of his own company finance and legal matters. Apparently the fee from the Business Department is only 4-5K and if you have not had any turnover for some time, it is not that complex.

Most Thai small business owners dont use a lawyer and the folks at the Business Department are quite happy to give you a list of things which need to be done or advice etc. If you have a Thai friend who has a business mind, they can go along with you and you could feasibly get it sorted yourself just following the required steps.

Best of luck.

[Sunbelt Asia]

Dear Buzzer,

In order to close your company you must carry out an audit, regardless of when your previous audit was carried out. Therefore, certain accouting costs must be anticipated during the process as well as legal fees. It will take approximately three months to close the company. During this period of time the company must continue to submit monthy VAT, despite the fact that the company will not be trading. At Sunbelt Asia, we provide a full company closure service.

For a free consultation please contact Sunbelt Asia at your convenience.

Best regards,

Emile de Marsac

Foreign Business Advisor

Sunbelt Asia Co.

www.sunbeltasia.com

[email protected]

[Serene]

Had the same problem with my previous dormant (and non compliant) company back in 1999.My accountant advised that if no accounts or tax returns had been filed for three years then it would be automatically struck off. Set up a new company subsequently for business and property purchase .No come back regarding the old company despite the fact it had done around a years trading(1997).I suspect the commercial registration department and tax office are more stringent nowadays-always seek qualified legal and financial advice however.

[buzzer]

Save yourself some money - just give the company away to someone who wants to form a company. Sign them on as a director and remove yourself.

That will still cost you some cash but not as much as closing the company.

Don't be tempted to just walk away unless you are leaving Thailand and never returning. After three years on non-payment of taxes you will find the taxes + interest add up to a lot-----plus there will be an arrest warrant out for you.

From Buzzer - OP. This is the hangup. That's exactly what I was trying to do - until I got an email from my lawyer/acct. this morning.

I've been talking with the lawyer about closing this corporations doors for 2 years. My first concern, and first question to my lawyer/acct. was, "What is the total cost to do this?" I recently found a man who's interested in buying my Thai Corp.

Now, for the past 2 years, the price my lier quoted (sorry, lawyer) has been ฿3000 + VAT to delete my name and put another name on. In addition another ฿3000 + VAT will remove all present Thai names from the corp, and replace them with Thai names of the buyer's choosing. Not Bad!

This morning my lawyer said I'd have to change the address too. The price for that? An additional ฿5000 + VAT - ฿5000 + VAT (if registering in another province) - which it is in this case. So last night I was able to tell the buyer his total price would be ฿6420. Today, upon this new disclosure from my lawyer basically doubling the amount with an extra, ฿7490. it killed the deal. I suggested that, instead of us doing this the buyer would be far better off going to Udon, where he wants to build, and do everything there. He would have to fly back there for some paperwork under our deal, plus he needs a copy of each Thai's ID, and a copy of the house papers or lease where he's renting.

By the time he goes through all this his price is going to be awfully close to just starting his corp from scratch. I didn't even ask my lawyer/acct. If the name of the corp. needed to be changed as well. I feared he would say yes - at another ฿7490.

After I emailed The lawyer about this new disclosure he called all full of justifications for what he did. I have always had a pet peeve against people trying to justify bad or unprofessional behavior. So when he called, I asked If he was trying to justify his actions. When he said, "Yes". I said, "I don't want to hear it." Unable to resist the urge to justify himself, he emailed me later.

When I asked him how much to sell my corporation years ago I, of course, asked tor the Total price, he only said I'd have to transfer my name, and gave me the quote for that, and that's how things stood for years. During that time I must have emailed him half a dozen times, and spoken on the phone a similar amount about corporation. But because he had me already using his terms, limited to talking about name changes of the participants he, therefore, didn't have to mention the extras. So he gave me half an answer because it isn't legally transferred without the address change (and as far as I know corporate name change). Everyone knows the best lie contains half the truth.

To me that's like someone giving me a 'total' price on a car, and then saying, late into the negotiation stage. "You'll need brakes to make that legal! How about an motor! Have you considered buying a steering wheel?"

Thank you for the good advise here, most notably the one I quoted from BTPattaya. Also, thanks Richard1808 for saying the business office can do it for ฿5000. I have some friends that do that "grunt" level legal work in BKK, perhaps I'll have a conversation with them.

I want to do the honest thing - I owe no man nor government a single dime (or satang, for that matter). I would still like to keep all my doors open (especially tourist entry gates) so that I can come back to Thailand at any time in the future to see my friends, and see the amazing improvements that Thailand with its clockwork government, unfeigned smiles showing love and respect for all, will be sure to make... whatdyathink? Before 2011 don't you think that everything should be a complete paradise here. Or do you think it be paracetamol, would be closer to the truth?

Thanks - Buzzer

[finner]

Just paid 70,000 Baht to close a company that I never wanted but was forced to set up. Annual taxes were 7000 Baht plus 20,000 for the accountant. What a relief to get rid of that albatross!

[buzzer]

Just paid 70,000 Baht to close a company that I never wanted but was forced to set up. Annual taxes were 7000 Baht plus 20,000 for the accountant. What a relief to get rid of that albatross!

Faking suicide would be easier

[Gary A]

And the amazing part is that there are still farangs paying big baht to set up these bogus companies. Pay to set them up and pay even more to shut them down.

[hawthorne]

How many people are misinformed and only find out the truth once in the trap?

I suspect a lot.

[buzzer]

How many people are misinformed and only find out the truth once in the trap?

I suspect a lot.

Have to plead, "guilty" on both counts above. I'm from the US, and if we don't make any money we don't have to file. How many countries is the opposite true of?

Then there's "Finner" above who paid ฿10,000 more than I every year, and finally 'got out' at a steeper rate than I ever heard before.

But I'm sure it's just a minor adjustment period, and pretty soon Farang will be given free hotels, spas, flights, and 50% discounts on everything. All workers will show up on time, do top quality work, and nobody will ever, ever lie to you. True, unselfish love will spring out everywhere, and no girlfriend will ask for a single satang for her grandpa's sick water buffalo. And YES, I do believe in the Easter Bunny!

Thanks! - Buzzer

I think this should pretty much put this topic to rest Thanks for all the great advice - and sympathy!

Edited February 6, 2010 by buzzer

[Paul888]

Word for word scenario I am in buzzer except I complained to the lawyer about the need for making fake accounts for what it is a DORMANT company in most countries in the world, and so I now pay only 12,000 including for the priviledge of not actually doing anything with it.

I too was quoted a ridiculous 60,000 to close it down, HOWEVER if you close it down from the date of your balance sheet you can save aout 20,000.

It is still a crazy situation, so I just keep it alive thinking one day, I will recover this money...one day.

[Bastogne]

Word for word scenario I am in buzzer except I complained to the lawyer about the need for making fake accounts for what it is a DORMANT company in most countries in the world, and so I now pay only 12,000 including for the priviledge of not actually doing anything with it.

I think that you can you pay less as I pay 7,000 baht to my lawyer, unchanged for the last 4 years, Business Office's fees included and this for a company without turnover.

The cost to set up a company with a capital of two million is no more than 20,000 Baht.

A few years before, with the help of another lawyer more expensive, I had the opportunity to get rid of a company and recover all the costs by selling these to a foreigner in a hurry.

For other services like, for example, a certificate concerning the company to register a vehicle, my lawyer tell me that it is nonsense to charge me a few hundred baht since I can go myself to the Business Office (where I went this morning and where an attendant helped me to complete the application - I can speak and read thaï but write...)

I have no idea about the cost of closing a company but it must be easy to get it from the Business Office to be plus a reasonnable lawyer fee.

I will try to get and post more information.